This article first appeared in The Edge Malaysia Weekly on August 31, 2026 - September 6, 2026

THE technology prowess of Wong Thean Soon, better known as T S Wong, who has been a household name in the country’s e-government services industry since 2000, came under question last Friday as shares of Zetrix AI Bhd (KL:ZETRIX) plunged in a selldown.

The company, which began as MyEG Services Bhd in 2000, was a pioneer in providing online services such as vehicle road tax and insurance renewals through a link-up with the Road Transport Department (JPJ).

Building on this foundation, Zetrix expanded into services for foreign workers, establishing a link with the Immigration Department. In recent years, the company has further diversified into blockchain solutions and artificial intelligence (AI) applications across the region.

The company has also had links to prominent political figures. Its executive chairman Datuk Dr Norraesah Mohamed is a former Umno Supreme Council member and senator.

In February, Zetrix drew attention after securing a RM155.6 million (US$40 million) investment from International Finance Corp (IFC), the private sector arm of the World Bank. According to Zetrix, IFC subscribed to new shares in the company to help fund the expansion of its digital infrastructure across the region.

But last Friday, the fortunes of Wong, 55, who is co-founder and group managing director of Zetrix, took a sharp turn.

Zetrix hit its limit down, with more than one billion shares changing hands. The stock ended at 29.5 sen, wiping about RM2.32 billion off its market capitalisation, which stood at RM2.38 billion.

The sell-off spread to Heitech Padu Bhd (KL:HTPADU), which fell as low as 87.5 sen during intra-day trading before recovering to close at RM1.08. Zetrix owns a 16.9% stake in Heitech Padu, which was awarded the RM1.05 billion National Integrated Immigration System ­(NIISe) contract by the government in October last year.

Zetrix is the technology delivery partner of Heitech Padu for the NIISe project, which is scheduled for completion in 2028. The system aims to modernise the Immigration Department’s IT infrastructure and manage the entry and exit of foreign workers, among other functions.

Two other companies linked to Wong — Cuscapi Bhd (KL:CUSCAPI) and Excel Force MSC Bhd (KL:EFORCE) — also came under selling pressure on Friday.

Wong moved quickly to reassure shareholders and investors that Zetrix’s operations remained intact.

“All remains good at Zetrix. There is no issue with the company as far as the management is concerned,” Wong told The Edge when contacted. “As far as we are concerned, there is no investigation on Zetrix and everything is in order at the company.”

Zetrix later held a briefing with analysts and investors on Friday afternoon, with Wong taking questions about the selldown. More than 500 participants were said to have joined the online session.

According to an analyst who attended the briefing, Wong dismissed speculation that the sharp decline in Zetrix’s shares was linked to former human resources minister Datuk Seri M Saravanan, who was charged with corruption on Friday morning.

The speculation arose partly because Zetrix’s e-government services include insurance and permit renewals for foreign workers.

Wong also rejected suggestions that Zetrix’s accounts had been flagged by its external auditors or that the company was being investigated by the Malaysian Anti-Corruption Commission (MACC).

“Wong nevertheless spoke about the selldown being triggered by margin calls on pledged shares and exacerbated by short-selling activities,” the analyst tells The Edge.

Wong told analysts and fund managers that he was in discussions with investors about buying shares from the market, although no deal had been firmed up.

“He was also unable to come up with estimates on how many more shares were pledged that could be ‘force-sold’ or give an idea on how long the short selling will go on,” the analyst says.

Wong also sought to reassure investors that plans to list Zetrix’s subsidiary, AI Foundation Lab, through a special purpose acquisition company (SPAC) on Nasdaq by the end of this year remain intact.

The proposed US listing is seen as a potential rerating catalyst for Zetrix. AI Foundation Lab is targeting a valuation of US$3 billion (RM12.1 billion), alongside a US$200 million capital raising exercise before the listing.

Zetrix plans to eventually pare down its stake in the US-listed company and use the proceeds to reduce its debt.

According to a research note from CLSA, proceeds from the listing are expected to fund future AI research and development as well as infrastructure expansion. The research house has a 12-month target price of RM1.60 for Zetrix, based on the potential listing of its subsidiary on Nasdaq.

Fund managers, however, remain cautious about Zetrix’s valuation and its plans in the US.

“When a company goes through a steep selldown, it is a matter of gaining the confidence of investors. Zetrix’s capital is huge with some eight billion shares issued. The shares of the major shareholder, Wong, are pledged. Nobody can tell for sure if the selling will stop,” says a fund manager.

Another analyst points to Zetrix’s rising debt as a cause for concern.

“The company generates strong operating cash flow but its cash flow from investments is higher. This means that while it generates cash, it spends more on developing and rolling out its infrastructure, which results in Zetrix’s debt rising,” says the analyst. (See table on Zetrix’s financial metrics.)

As at end-June, Zetrix had RM2.2 billion in debt, and cash and bank balances of RM541.6 million. It had total assets of RM6.65 billion, of which RM3.73 billion were development costs.

In an Aug 26 note, MBSB Research said Zetrix’s rising gearing warranted a more prudent approach to its valuation as the company expands its services. The research house cut its target price for Zetrix to 90 sen from RM1.24.

Zetrix’s 2025 annual report shows that Wong is the company’s largest shareholder, with a direct interest of 14.8% and an indirect stake of 14.5% through Asia Internet Holdings Sdn Bhd. However, most of his shares are pledged.

Unless Wong can restore investor confidence, selling pressure on the stock is unlikely to ease.

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